Support and Resistance Strategies

Support and Resistance Forex Strategies

Support & Resistance
systems are designed for sideways or
directionless markets, and

they typically have the following attributes:

. They buy low and sell high in an attempt to take advantage of the sideways
price

movement characterizing directionless markets.

. They have a high number of winning trades, with small profits on each trade.
They

sell as the market goes higher and take small losses until the market finally
turns

down and results in a profitable trade.

. They are easier to trade emotionally.

By design, these systems miss the big move

—they usually have small profits and larger losses as markets trend. The system
keeps shorting a market that is in an uptrend or buying a market that is in a downtrend. Therefore, when traders use Support &Resistance systems, they use them within a group of systems that
also includes trending systems and perhaps one or more volatility systems.